Hartlepool chiefs writing to Government over 'appalling' social care situation

Councillors on Hartlepool Borough Council Finance and Policy Committee heard the authority is to face its most ‘difficult financial position to date’ in 2021/22.

Chris Little, council director of resources and development, noted last week the council received a spending review announcement from the Government, and estimated Hartlepool could face around a £4million deficit for 2021/22.

He noted from the initial spending review adult and children’s social care grant funding is to be less than expected compared with previous years.

He said it was hoped an extra £1billion would be going to local authorities to support children and adult social care pressures, but it will only be £300million.

This means instead of the £2.2million hoped for, Hartlepool Council is likely to only receive around £700,000.

However it was noted local authorities could raise a further £700million nationally if they adopt a 3% adult social care precept, which would form part of a resident’s council tax bill.

Hartlepool Borough Council leader Cllr Shane Moore raised a motion, which was backed by councillors on the committee, to write to Government ministers and the town’s MP over the ‘appalling’ situation.

The motion also includes explaining the current situation to residents and seeking their views on the social care precept through a ‘meaningful consultation’.

He said: “Given the appalling announcement in the spending review that the Government will break with the previous £1billion annual social care grant increase given to local authorities and to instead only give us £300 million this year, this year of all years.

“The announcement was clear that they expect us as local authorities to pick up the £700million difference through a 3% social care precept.”

The committee will also be writing to the treasury and the Ministry of Housing, Communities and Local Government over the issue, and ‘demand it is revisited’.

Mr Little noted the Government also announced a 4.5% increase in spending power for local authorities as part of the spending review.

However of the £2.2billion increase to be shared across the country, £1.2billion of this would actually come from local authorities increasing council tax in line with referendum limits.

He therefore claimed the Government is ‘effectively nationalising council tax increases’ for local authorities.

Mr Little said: “The limits they’ve set, that effectively, for want of a better phrase, nationalises council tax increases. It continues to shift the funding on to local taxpayers rather than national taxpayers.

“I think one of the things that’s a worry for myself, and for yourselves as councillors, is authorities that choose not to implement council tax increases set out in the Government spending plans, you will find it very difficult to argue with the Government for more money.

“They will turn around to you and say we gave you the tools, you didn’t use the tools, that was your decision, you will live with the consequences, and that is quite a blunt message that is in the small print in the settlement.”

He added the council will face its most ‘difficult position to date’ in 2021/22 and councillors will have to make ‘very difficult’ calls important for the ‘financial foundations’ of the authority in future years.

Officers noted the council previously faced nine consecutive years of funding cuts up to 2019/20, and since 2013/14 has seen core Government funding reduced by 41% and nearly £26million.

The committee will next meet in January, when decisions will have to be made in regards to next year’s budget, such as the rate of council tax.

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